About release of payments and prepayments

Introduction

In this topic

This topic describes:

The windows you may use to release a payment or prepayment.
What happens in the system after release.
The details of the general ledger batch generated after release.

When and where to release a payment and prepayment

The following table displays when and where (pre)payments can be released.

When a payment or prepayment has the status	Then it can be released in	For instructions on how to release, see
Balanced	Customer payments (AR302000)	Release a payment document
Release customer documents (AR501000)	Release customer documents

System processes after releasing payments and prepayments

The following tables give an overview of what happens in the system after the release of a (pre)payment.

Payments

	Payment
System change	without applications	partially applied	fully applied	voided
Status changes to	Open	Open	Closed	#### Closed Note: the status of the payment changes to Voided.
Paid documents’ balances are	not applicable	decreased Note: if paid document’s balance becomes 0, its status changes to Closed.	decreased Note: if paid document’s balance becomes 0, its status changes to Closed.	increased Note: if paid document’s status was Closed, the status changes to Open.
Customer’s balance is	decreased with payment amount	+ decreased with paid amount + decreased with available payment balance	decreased with paid amount	increased with voided amount
Application records are released	not applicable	yes	yes	yes, any reversed application records are released
General ledger batch is created	yes	yes	yes	yes

Prepayments

	Prepayment
System change	without applications	partially applied	fully applied
Status changes to	Open	Open	Closed
Paid documents’ balances are	not applicable	decreased Note: if paid document’s balance becomes 0, its status changes to Closed.	decreased Note: if paid document’s balance becomes 0, its status changes to Closed.
Customer’s balance is	not applicable	decreased with paid amount	decreased with paid amount
Customer’s prepayment balance is	increased with prepayment amount	increased with available prepayment amount	not applicable
Application records are released	not applicable	yes	yes
General ledger batch is created	yes	yes	yes

General ledger batch after release of payment and prepayment

The following sections give information about the general ledger batch created after the release of a (pre)payment.

Involved accounts

When a payment or prepayment is released, the system generates a general ledger batch to update the involved asset accounts with the (pre)payment transactions. Usually, this involves the following accounts retrieved from other fields in the system:

Account type	Specified in the Customer payments (AR302000) window’s field for	Corresponding field in Customers (AR303000) window, General ledger accounts tab, per document type
Asset	the Customer ledger account on the Financial details tab.	Payment: #### Customer ledger account
Prepayment: 1. Prepayment account (if set) 1. Customer ledger account
Cash	the Cash account in the top part.	not applicable

Recorded transactions

The transactions recorded in the general ledger batch differ depending on the below described specifications.

Payments and prepayments with no designated prepayment account

After the release of a payment or a prepayment with no designated prepayment account, regardless of whether the payment or prepayment is without applications, partially or fully applied, the following transactions will be recorded:

Account	Debit	Credit
Cash account	(Pre)payment amount	0.0
Customer ledger account	0.0	(Pre)payment amount

Prepayments with designated prepayment account

For a prepayment with a designated prepayment account that differs from the customer ledger account used to record payments to, the recorded transactions differ depending on whether the prepayment is without applications, partially applied or fully applied.

Prepayment without applications

After the release of a prepayment without applications, the following transactions will be recorded:

Account	Debit	Credit
Cash account	Prepayment amount	0.0
Customer ledger account for prepayments	0.0	Prepayment amount

Partially applied prepayment

After the release of a partially fully applied prepayment, with a designated customer ledger account that differs from the customer ledger account used to record outstanding documents to, the following transactions will be recorded:

Account	Debit	Credit
Cash account	Prepayment amount	0.0
Customer ledger account for prepayments	0.0	Paid amount (prepayment amount - applied amount)
Customer ledger account for invoices	0.0	Applied amount

Fully applied prepayment

Account	Debit	Credit
Cash account	Prepayment amount	0.0
Customer ledger account for invoices	0.0	Prepayment amount

Batch details and additional transactions

The following sections explain where to view the batch details and where to find more information on additional transactions.

View batch details

You can view the batch details by clicking the link in the Batch no. field on the Financial details tab of the Customer payments (AR302000) window.

Bank charge and application record transactions

The following additional transactions may be generated and included in the batch:

Transaction type	For details, see
Bank charge	Finance charge transactions
Application record	About release of application records